Perth based ISP, iiNet, may be busy integrating a number of fresh acquisitions but will continue to sniff out opportunities to buy.
The company announced record growth for its financial year ending June 30. Revenue was up 13 per cent on the previous year to $474 million.
While integration of Westnet into the iiNet business has gone without much hiccup, the acquisitions of AAPT’s consumer division and Netspace are still being digested.
iiNet claims to have usurped Optus to become the second largest DSL provider in Australia although iiNet’s fixed-line customer numbers are still below Optus. But iiNet has maintained a healthy churning of customers – that is, porting services from competitors to its own network – and the figures show the numbers will remain steady.
“There is still more room for growth and our organic growth hasn’t slowed in the last two years,” iiNet chief, Michael Malone, said.
But organic growth can only take a business so far. iiNet has indicated AAPT have been losing customers at 15 per cent of its topline [growth] per year for the past three years. This means the iiNet business has to work overtime to compensate for the loss of customers by AAPT over the next two years.
“So there is going to be pressure on net growth number so against that and on top of that, we think there is further opportunity for organic growth,” Malone said. “We think, yes, we’ve got a lot on our plates right now with Netspace and AAPT.
“But we think in the next year or two there will be limited opportunities to participate in consolidation and we don’t want to watch them go by just because we’re busy.”